Andrew Bree will be eligible to compete at the Olympics in Beijing after being given a warning as opposed to a ban for his positive drugs test.
Last month it was announced that Bree had failed a drugs test after a urine sample showed Levmethamfetamine traces.
The Irish swimmer attributed the result to him taking the US version of an over-the-counter decongestant.
A spokesman for Bree said that Fina had "accepted" the swimmer's explanation for the positive drugs test.
The UK version of the Vicks Inhaler does not contain Levmethamfetamine.
There had been fears that Bree could be handed a six-month ban which would have ruled him out of the Beijing Games.
The 27-year-old had his funding from the Irish Sports Council suspended and opted not to have his B sample analysed.
"I am thrilled for everybody that this judgement has vindicated me"
"Andrew used an over the counter Vicks Nasal Inhaler which he purchased in the USA," added the spokesman.
"The US version of this product contains a banned substance and the Fina doping panel has stated it is 'convinced that the use of Levmethamfetamine was not intended to enhance his performance' and that Andrew had gone to 'all possible lengths to check that the medical product that he was using contained no such banned substance'.
"Having accepted Andrew's explanation and noted his open and frank approach to the issue, the panel issued has him with a reprimand and warning - the least possible sanction open to it according to its rules."
Bree spoke of his relief that his "two-month ordeal is over".
"These last two months have been an extremely difficult and stressful time for both myself and my family and I am thrilled for everybody that this judgement has vindicated me.
"I have always opposed the use of drugs in sport and will continue to do so."
"I am also grateful to the Fina and its Doping Panel for the efficient and speedy way in which this case has been conducted"
Bree added that he was "deeply grateful" for the support he had received from his family, friends and fellow swimmers.
He also thanked his legal team Andrew Coonan and Dr Neville Cox and scientist Dr Mike Wheeler "for their extremely professional job".
"I am also grateful to the Fina and its Doping Panel for the efficient and speedy way in which this case has been conducted."
Bree made a full submission to Fina on 20 May which included a personal letter from the swimmer, legal and scientific reports plus a number of character references.
German official Harm Beyer chaired the Fina doping panel which also included Australian representative Peter Kerr and Toshiro Ueyanag from Japan.
Bree is the only Irish swimmer so far to have made the 'A' qualifying time for the Olympic Games in Beijing in August.
The Northern Ireland man clinched Olympic qualification in July 2007 when taking part in the 200m breaststroke at the US Nationals.
The World Anti-Doping Authority had previously said that athletes could receive a "reduced sanction" if they established that the use of "such a specified substance was not intended to enhance sport performance".
The Irish Sports Council said at the time that it had warned all its funded athletes about the dangers of using Vicks decongestant.
Bree competed in the 2000 Olympics in Sydney but he failed to qualify for the Athens Games.
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